Financial Position 6 Liabilities Thin Capitalisation Arms Length Debt Amount Arm?s length debt amount is a notional amount of debt attributable to a Non Authorised Deposit-taking Institution entity?s Australian operations determined under the arm?s length test in the legislation. This is a purpose calculation, if relying on a separate debt test to satisfy thin cap criteria. It requires a review of a number of IFRS balances and their components. Inform the relevant field with the relevant entity's Arm?s length debt amount. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation Asset Revaluation Amount This is the asset revaluation amount for Thin Capitalisation purposes. This is a tax calculation based on IFRS values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field of the amounts of asset revaluation for thin capitalisation purposes. Liabilities Thin Capitalisation Assets Value Average Amount The average value, for the income year, of all the entity?s assets. This is a tax calculation based on Asset Average Values for the specific purposes of Thin Capitalisation. Inform the relevant field with the average value of the entity's assets over the given period. Do not inform this field if either a code 7 or 8 was used to inform the field relating to entity type at the end of the income year. Liabilities Thin Capitalisation Associate Entity Debt Average Value Amount The average value, for that year, of all the entity?s associate entity debt. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the average value of associate entity debt. Associate entity debt is the debt lent to an associate entity on arm?s length terms and conditions. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation Associate Entity Equity Average Value Amount The equity of an investing entity has invested in an associate entity and the debt interests issued by the associate entity to the investing entity that do not and will not at any time give rise to debt deductions. This is measured from the investing entity?s perspective. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the average value of associate entity equity. Associate entity equity is an amount calculated by a non-ADI outward investor or a non-ADI inward investing entity (an investing entity) in respect of each of its associate entities. Please refer to the Thin Capitalisation Guide on ato.gov.au Liabilities Thin Capitalisation Associate Entity Excess Average Value Amount The average proportion of excess borrowing capacity of an associate entity and any premium paid for an investment in an associate entity that can be used to increase the investing non-ADI entity?s safe harbour debt amount and worldwide gearing debt amount.This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. The relevant entity's associate entity excess amount at a particular time during that period is the result of applying the method statement in this subsection. Calculate the premium excess amount, as at that particular time, for an associate entity of the relevant entity that is the issuer of an equity interest or a debt interest any value of which is all or a part of the relevant entity's associate entity equity at that time. Add to this result, the attributable safe harbour excess amount for that associate entity as at that time. Apply to all such associate entities of the relevant entity and inform by adding all the results that are positive amounts. The result of this step is the associate entity excess amount. Liabilities Thin Capitalisation Averaging Method Adopted Code This is the code that represents the type of averaging method used for recalculating average values, Prescriptive Information relating to tax deductibility of interest on international dealings. Refer to the legal reference for the calculation method. 1 = Opening/closing balances, 2 = Three measurement days, 3 = Frequent measurement ? quarterly, 4 = Frequent measurement ? regular intervals Liabilities Thin Capitalisation Controlled Foreign ADI Entity Equity Average Value Amount The average value, of all the ADI's controlled foreign entity equity for that year, unless it is attributable to any of the ADI's overseas permanent establishments. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. The relevant entity's controlled foreign entity equity at a particular time during the relevant period is the total value of all the equity interests that the entity holds, at that time, in entities that are controlled entities of the relevant entity at that time; and all the debt interests on issue and held by the entity at that time that satisfy both of the interests that were issued by entities that are controlled entities of the relevant entity at that time; none of the interests gives rise to any cost, at any time (please refer to legal references). It is necessary to take into account the value of an equity interest in, or a debt interest issued by, a controlled entity of the relevant entity only to the extent that the interest is not attributable to any of the assets that are held by the controlled entity throughout the relevant period for assets attributable to the controlled entity's Australian permanent establishments and also for other assets that are held by the controlled entity for the purposes of producing assessable income of the controlled entity. Liabilities Thin Capitalisation Controlled Foreign Entity Debt Average Value Amount The average debt interests issued by a controlled foreign entity to an Australian controller of that entity or to an associate entity of that Australian controller. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the relevant entity's controlled foreign entity debt. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation Controlled Foreign non ADI Entity Equity Average Value Amount The average equity interests held in a controlled foreign entity by an Australian controller of that entity or by an associate entity of that Australian controller. It may also include certain debt interests. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the relevant entity's controlled foreign entity equity. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation Debt Adjusted Average Amount The adjusted average value of an entity?s debt capital that gives rise to debt deductions and cost-free debt capital. Average debt excludes debt capital attributable to any of its overseas permanent establishments. This is a tax calculation based on IFRS values - not one value but many values depending on their nature - a complex calculation. Liabilities Thin Capitalisation Debt Maximum Allowable Amount This is the maximum amount of debt a non-Authorised deposit-taking institution (ADI) entity can have before debt deductions are disallowed under the thin capitalisation rules. This is a notional tax calculation based on the maximum debt an entity can have prior to enacting the disallowance of interest. Exclusive to Thin Capitalisation, the maximum allowable debt is the greatest of the safe harbour debt amount, the arm?s length debt amount, and the worldwide gearing debt amount (available only to Australian entities which are not foreign controlled). Liabilities Thin Capitalisation Deduction Debt Disallowed Amount This is the amount of excessive debt deduction disallowed as indicated in the Income Assessment Act 1997. Please refer to the legal reference for the calculation method. This is a tax calculation based on IFRS values - not one value but many values depending on their nature - a complex calculation. Liabilities Thin Capitalisation Deduction Debt Amount Costs incurred in connection with a debt interest that are deductible subject to the thin capitalisation rules. Refer to the legal reference for the calculation. Inform the relevant field with the costs incurred in connection with a debt interest that are deductible subject to the thin capitalisation rules. Liabilities Thin Capitalisation Dotation Capital Average Value Amount The average value, for that year, of all the amounts the ADI has lent to its Australian permanent establishments through which it carries on its banking business in Australia that do not give rise to any debt deductions for the ADI in that year or any other income year. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the average value, for that year, of all the amounts the ADI has lent to its Australian permanent establishments through which it carries on its banking business in Australia that do not give rise to any debt deductions for the ADI in that year or any other income year. Liabilities Thin Capitalisation Earning Exempt Debt Deduction Amount This is any debt deductions in earning exempt foreign income (S25-90) in the income year. This is a purpose calculation so as to tax concession carve outs on exempt income components. Cannot tie into financials but possible to tie into S 25A ? If an entity, together with its associates, has debt deductions of $250, 000 or less in an income year, it is excepted from the thin capitalisation rules in that income year. Liabilities Thin Capitalisation Entity Type Code This is the code for Thin Capitalisation entity type as demonstrated at the end of the income year or relevant period. Prescriptive Information relating to tax deductibility of interest on international dealings. Refer to the publication Guide to Thin Capitalisation and the Income Tax Assessment Act 1997 (ITAA 1997) to inform the field with the relevant code symbol. 1 = Outward investor (general), 2 = Outward investor (financial), 3 = Inward investment vehicle (general), 4 = Inward investment vehicle (financial), 5 = Inward investor (general), 6 = Inward investor (financial), 7 = Outward, 8 = Inward Liabilities Thin Capitalisation Equity Capital Adjusted Average Amount This is the maximum amount of debt a non-Authorised deposit-taking institution (ADI) entity can have before debt deductions are disallowed under the thin capitalisation rules. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. The maximum allowable debt is the greatest of the safe harbour debt amount, the arm?s length debt amount, and the worldwide gearing debt amount (available only to Australian entities which are not foreign controlled). Liabilities Thin Capitalisation Equity Capital Attributable To Overseas Permanent Establishments Amount The adjusted average value of an outward investor authorised deposit-taking institution?s equity capital, other than equity capital attributable to its overseas permanent establishments and equity invested in its controlled foreign entities. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the entity's adjusted average equity capital for an income year that is either the average value, for that year, of all the Authorised Deposit-taking Institution's (ADI) equity capital of the entity (other than ADI equity capital attributable to its overseas permanent establishments); minus the average value, for that year, of all the controlled foreign entity equity of the entity (other than controlled foreign entity equity attributable to its overseas permanent establishments). Note: To calculate an average value for the purposes of this Division, please refer to the legal reference for the calculation method. This field must be informed if either a code 7 or 8 has been used to inform the entity type at the end of income year field. Liabilities Thin Capitalisation Excess Debt Amount The amount by which an entity?s adjusted average debt is more than its maximum allowable debt. This amount is used to calculate the proportion of debt deductions disallowed. This is a tax calculation based on Thin Cap values - has its calculation performed based on other tax values. Inform the relevant field with the amount of debt deduction disallowed using the following formula Debt deduction ? (Excess debt divided by Average debt). If unclear, please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation General To Financial Status Change Indicator A question to determine whether the entity's status has changed from 'general' to 'financial' during the income year? Prescriptive Information relating to tax deductibility of interest on international dealings. Y=Yes, N=No Liabilities Thin Capitalisation Non Debt Liabilities Average Value Amount The average value, for that year, of all the entity?s controlled foreign entity equity. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the average value, for that year, of all the entity?s controlled foreign entity equity. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation On Lent Average Amount A term used in the adjusted on-lent amount calculation for a financial entity to describe average amounts the entity has lent to other entities, certain leases and certain securities agreements. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the average on-lent amount. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation Provisions Applied Indicator Question to determine if the thin capitalisation provisions applied as outlined in the instructions and the Guide to thin capitalisation. If the answer is true, then a Thin capitalisation schedule must be completed. Liabilities Thin Capitalisation Related Non Residents Debt Deduction Amount This is the debt deductions on debt from related non-residents. This is a purpose calculation as to the amount of debt deduction on international related party loans. Cannot tie into financials but possible to tie into S 25A ? Inform the relevant field with the debt deductions on debt from related non-residents. Liabilities Thin Capitalisation Risk Weighted Assets Attributable To Australian Permanent Establishments Average Amount The average value of the ADI's net risk-weighted assets attributable to its Australian operations.This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the entity's average value of the ADI's net risk-weighted assets attributable to its Australian operations. The risk-weighted assets are its risk exposures determined in accordance with either the Australian prudential standards or the prudential standards of the foreign country in which the ADI is a resident. Inform the relevant field with the equity capital attributable to overseas permanent establishment. The safe harbour capital amount is the result of applying the method statement. When using the Method Statement, calculate the equity capital attributable to overseas permanent establishment, for the income year, of all the risk-weighted assets of the entity, other than risk-weighted assets attributable to the entity's overseas permanent establishments; assets comprised by the controlled foreign entity equity of the entity (other than controlled foreign entity equity attributable to the entity's overseas permanent establishments); assets for which prudential capital deductions must be made by the entity (other than prudential capital deductions attributable to the entity's overseas permanent establishments). Liabilities Thin Capitalisation Risk Weighted Assets Average Value Amount The adjusted average value of an outward investor authorised deposit-taking institution?s equity capital, other than equity capital attributable to its overseas permanent establishments and equity invested in its controlled foreign entities. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the entity's adjusted average equity capital for an income year that is either the average value, for that year, of all the Authorised Deposit-taking Institution's (ADI) equity capital of the entity (other than ADI equity capital attributable to its overseas permanent establishments); minus the average value, for that year, of all the controlled foreign entity equity of the entity (other than controlled foreign entity equity attributable to its overseas permanent establishments). Note: To calculate an average value for the purposes of this Division, please refer to the legal reference for the calculation method. This field must be informed if either a code 7 or 8 has been used to inform the entity type at the end of income year field. Liabilities Thin Capitalisation Tier 1 Prudential Capital Deduction Amount Tier 1 capital as defined in the prudential standards as determined by Australian Prudential Regulation Authority and the Banking Act 1959. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the prudential capital deduction, for an entity and at a particular time. In accordance with the prudential standards as in force at that time, the total amounts must be deducted in calculating the eligible tier 1 capital of the entity at that time (within the meaning of those standards) or the sum of the eligible tier 1 and tier 2 capital of the entity at that time (within the meaning of those standards). Liabilities Thin Capitalisation Transitional Provision Application for Calculations Indicator A question to determine if the entity undertook calculations for thin capitalisation purposes using Australian generally accepted accounting principles (AGAAP) as they existed on 31 December 2004. Prescriptive Info relating to tax deductibility of interest on international dealings. Inform the relevant field withTrue if the entity undertook calculations for thin capitalisation purposes using Australian generally accepted accounting principles (AGAAP) as they existed on 31 December 2004. Otherwise Inform the relevant field with False. Liabilities Thin Capitalisation Worldwide Capital Amount One of the amounts available to an Australian Authorised deposit-taking institution (ADI) that is not foreign controlled to establish its minimum capital amount. This is a purpose calculation, if relying on a separate gearing test to satisfy thin cap criteria. It requires a review of a number of IFRS balances and their components. Inform the relevant field with the calculated worldwide capital amount. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation Worldwide Debt Amount The total debt owed by an Australian outward investor and its controlled foreign entities (excluding debt owed to each other). This is a purpose calculation, if relying on a separate gearing test to satisfy thin cap criteria. It requires a review of a number of IFRS balances and their components. Inform the relevant field with the worldwide debt amount. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation Worldwide Equity Amount The total equity capital of an Australian outward investor and its controlled foreign entities (excluding equity invested in each other). This is a purpose calculation, if relying on a separate gearing test to satisfy thin cap criteria. It requires a review of a number of IFRS balances and their components. Inform the relevant field with the worldwide equity amount. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation Worldwide Gearing Debt Amount One of the amounts available to an Australian non-Authorised deposit-taking institution (ADI) entity that is not foreign controlled to establish its maximum allowable debt. This is a purpose calculation, if relying on a separate gearing test to satisfy thin cap criteria. It requires a review of a number of IFRS balances and their components. Inform the relevant field with the worldwide gearing debt amount. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation Worldwide Group Capital Ratio Amount The ratio of the average value of the eligible tier 1 capital of the consolidated group of which the entity is a member to the average value of the risk-weighted assets of that group. This is a purpose calculation, if relying on a separate gearing test to satisfy thin cap criteria. It requires a review of a number of IFRS balances and their components. Inform the relevant field with the worldwide group capital ratio. Please refer to the legal reference for the calculation method. Liabilities Thin Capitalisation Zero Capital Average Amount A term used in the average total debt amount calculation for financial entities to describe specific amounts that can be wholly funded by debt. This is a purpose calculation based on IFRS asset/liability values - not one value but many values depending on their nature - a complex calculation. Inform the relevant field with the entity's zero-capital amount. Please refer to the legal reference for the calculation method.